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Kim Reynolds signs 2% K-12 funding boost. Here's what Iowa schools get

The 2% increase adds about $160 per student and includes $7 million for paraeducator pay amid calls for higher funding to match inflation, officials said.

  • Gov. Kim Reynolds signed Senate File 2201 on Thursday, Feb. 26, creating a 2% State Supplemental Aid increase for State Fiscal Year 2027.
  • After negotiations, lawmakers reached a compromise as the Iowa Senate approved the bill earlier this week following a 27-20 vote amid proposals of 1.75% and 2.25% and district calls for a 5% increase.
  • Under the new law, state spending per student will be $8,148 for 2026-27 and it includes $7 million to raise pay for paraeducators and school support staff.
  • Education groups responded that the Iowa State Education Association called the bill a `hit to educational quality`, and Democrats warned it shortchanges schools and leaves 199 districts on the budget guarantee, risking cuts or higher taxes.
  • Looking at the bigger picture, officials say that when accounting for state, local and federal funding streams, Iowa schools are estimated to receive over $9.1 billion in 2026-27, despite the state general fund support lagging inflation since FY2017.
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The N'West Iowa REVIEW broke the news in on Thursday, February 26, 2026.
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